The inflow of overseas workers’ remittances into Pakistan stood at $3.46 billion in January 2026, the State Bank of Pakistan (SBP) data showed on Tuesday.

Remittances increased by nearly 15.4% year-on-year (YoY), compared to $3.0 billion recorded in the same month last year. Monthly remittances were down 4% from $3.59 billion in December.

During the first seven months of the fiscal year (7MFY26), remittance inflows stood at $23.2 billion, up from $20.9 billion in 7MFY25, a jump of 11.3%.

“Remittances growth momentum is continuing on the back of higher manpower exports in previous years, lower differential in formal and informal exchange market and continuation of remittances incentive package,” said Topline Securities.

 “Our remittances target for FY26 is at $41 billion, up 7.5% from the FY25 level of $38 billion,” it added.

Remittances play a significant role in supporting the country’s external account, stimulating Pakistan’s economic activity, and supplementing the disposable incomes of remittance-dependent households.

Meanwhile, the government promotes remittances through incentives and formal channels to sustain steady growth and ensure their role in economic stability.

Last year, SBP noted that since 2009, the Pakistan Remittance Initiative (PRI) has been working to enhance home remittances through formal channels in Pakistan. As a result of active engagements with financial institutions (FIs), the number of FIs on the PRI network has increased from around 25 in 2009 to more than 50 in 2024.

The FIs include conventional banks, Islamic banks, microfinance banks, and Exchange Companies (ECs).

Further, Electronic Money Institutions (EMIs) are also allowed to receive home remittances through banks. The number of international entities has increased from around 45 in 2009 to around 400 at present.

Breakdown of remittances

Overseas Pakistanis in Saudi Arabia remitted the largest amount in January 2026, sending $740 million. The amount was up 2% on a yearly basis, but down 9% compared to the $813 million sent by the expatriates in December.

Inflows from the United Arab Emirates (UAE) rose by 12% on a yearly basis, from $622 million to $694 in January 2026.

Remittances from the UK amounted to $572 million during January 2026, up by 2% compared to $560 million in December 2025. YoY inflows from the UK were up by 29%.

Overseas Pakistanis in the US sent $295 million in January 2026, a YoY decrease of 1%, and down 2% on a monthly basis.

Meanwhile, remittances from European Union (EU) countries clocked in at $480 million in January, recording a significant increase of 36% on a yearly basis.